CMPS Regulatory Compliance & Lending Guidelines 3

Question 1

Under the Fair Housing Act, which of the following is NOT a protected class at the federal level?

Accepted Answer

Sexual orientation

Answer

Sexual orientation is not a protected class under the federal Fair Housing Act, though many states and localities have added it through their own laws.

Question 2

The three-day right of rescission under TILA applies to which type of mortgage transaction?

Accepted Answer

Refinance of a primary residence with a new lender

Answer

The three-day right of rescission under TILA applies to non-purchase refinance transactions secured by the borrower's primary residence.

Question 3

A mortgage loan officer who works for a federally insured depository institution must register under which system?

Accepted Answer

Nationwide Mortgage Licensing System (NMLS) Registry

Answer

MLOs employed by federally insured depository institutions must register with the NMLS Registry under the SAFE Act, while those at non-bank lenders must obtain a state license.

Question 4

What is the maximum prepayment penalty period allowed under the Qualified Mortgage rule?

Accepted Answer

36 months

Answer

Qualified Mortgages may include prepayment penalties only for up to 36 months after consummation, and only on fixed-rate or step-rate QMs.

Question 5

Under Regulation Z, the finance charge disclosure in a mortgage must be delivered to the borrower how many business days before consummation?

Accepted Answer

3 business days

Answer

TRID requires the Closing Disclosure to be delivered to the borrower at least 3 business days before consummation of the loan.

(CMPS) Certified Mortgage Planning Specialist Practice Test

(CMPS) Certified Mortgage Planning Specialist Practice Test

CMPS Regulatory Compliance & Lending Guidelines 3